Next Home

Next Home is a deferred second loan for homebuyers in Statewide, Indiana. Next Home is IHCDA's repeat-buyer-friendly DPA tier, providing up to 3.5% of the purchase price as a 0% interest non-forgivable second mortgage paired with a 30-year fixed IHCDA first mortgage (FHA or Conventional). NO first-time-homebuyer requirement — uniquely flexible vs. First Step. 660 FICO Conventional / 640 FICO FHA. County-specific income and acquisition limits. Next Home provides up to 3.5% of the purchase price as down payment and closing-cost assistance, structured as a 0% interest, non-forgivable second mortgage with NO monthly payments. The principal balance is deferred and due only on sale, refinance, payoff, or transfer of title within the 2- or 3-year affordability period (depending on first-mortgage product). after the affordability period, no further repayment is owed if the borrower remains in the home. Paired with an IHCDA 30-year fixed-rate FHA or Conventional first mortgage. NO first-time-homebuyer requirement — available to repeat buyers as well. Funding comes from State, HFA, and Bond.

Next Home provides assistance worth 3.5% of the purchase price, as set by the program. The program asks homebuyers to contribute $250 IHCDA reservation/program fee; lender may also require minimum borrower contribution per first-mortgage product. Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Next Home is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off. Repayment is triggered by Deferred and balance due on sale, refinance, payoff, or transfer of title within the affordability period. The assistance is recorded in 2nd Lien position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Next Home is open to homebuyers who will live in the home as their primary residence. On credit, the program states: 660 minimum FICO for Conventional; 640 minimum FICO for FHA. Residency requirement: Property must be located in Indiana and used as borrower's primary residence. Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per first-mortgage product overlays. NO first-time-homebuyer requirement. Minimum 660 FICO for conventional, 640 for FHA. Max 45% DTI (50% with FHA total scorecard accept and 680 FICO). Property must be primary residence. Household income at or below IHCDA published county limits (top tier ~$156,520). Purchase price at or below IHCDA county-specific acquisition limit. $250 reservation fee. Standard IHCDA underwriting overlays apply.

Next Home limits household income to $156,520. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Next Home caps the purchase price at $594,770. Eligible property types include Single-family detached, condominium, townhouse, PUD, 2-unit (per first-mortgage overlays). New construction is eligible. Manufactured homes are not eligible.

Next Home serves homebuyers purchasing in Statewide, Indiana. The program targets specific areas: IHCDA designates federally qualified target areas where income/acquisition limits are relaxed.

Applications for Next Home go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through IHCDA-approved lender reserves funds via IHCDA Online Lender Portal (OLP) at time of loan reservation; subject to bond/program funding availability and $250 reservation fee. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.